Inflation Ahead

January 10th, 2017

Three-quarters of the economists responding to the Financial Times’ annual survey said UK inflation was likely to top 2 per cent in 2017, while a third of them expected inflation to exceed 3 per cent during the year. The 15 per cent decline in the exchange value of the £ is cited as the main cause, though there is still much disagreement on how quickly that will feed through to retail prices. Most economists still agree with the Bank of England that the rise in inflation will be temporary, since there is as yet no sign of an upturn in average earnings.